Nespresso UK


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A quick picture of Nespresso's CRM

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Nespresso UK

  1. 1. NESPRESSO CRM & Sales Management Presentation: Leonor SILVA Xiaoran XIE Yingyu LIU Gang WANG Adedeji Osobukola
  2. 2. Contents of the Presentation <ul><li>Introduction: </li></ul><ul><ul><li>Company’s Background </li></ul></ul><ul><li>CRM & Sales: </li></ul><ul><ul><li>Relationship Marketing & Selling Practices; </li></ul></ul><ul><ul><li>Analytical CRM; </li></ul></ul><ul><ul><li>Operational CRM </li></ul></ul><ul><li>What the Future Holds: </li></ul><ul><ul><li>Poster </li></ul></ul><ul><li>References & Resources; </li></ul>
  3. 3. C ompany’s B ackground <ul><li>Nestlé Nespresso S.A. is the worldwide pioneer and market leader in premium portioned coffee ; </li></ul><ul><li>Nespresso’s ‘ Ultimate Coffee Experience’ consists on a combination of the world’s highest-quality Grand Cru coffees, smart and stylish coffee machines and second-to-none customer service. ( Nespresso Academy Website ) </li></ul><ul><li>Born in Switzerland in 1986, their products are now sold in more than 50 countries , directly to its customers . ( Nespresso Corporate Website ) </li></ul><ul><li>They currently operate more than 79 prestigious boutiques in key cities around the world, such as London, Lisbon, Paris, etc. </li></ul>Nespresso Academy Website
  4. 4. R elationship M arketing: Diagram of Trade Relations Customer as the unique point of contact between Retailers & Club; The retailers as a POS for machines only & as recipients of sales techniques training; Company as a recipient and a sender of the customer needs; The Club as a link between customers & Company Original Diagram by Leonor Silva Nes p resso Nespresso Club Retailers Customers
  5. 5. Selling Practices <ul><li>Retailers – Sell Machines only; </li></ul><ul><li>Nespresso Club – Sells/ Provides everything else: </li></ul><ul><ul><ul><li>Exclusive membership for customers only; </li></ul></ul></ul><ul><ul><ul><li>Coffee capsules (sale & distribution); </li></ul></ul></ul><ul><ul><ul><li>Cups & saucers, sugar bowls, milk jugs, Aeroccino; </li></ul></ul></ul><ul><ul><ul><li>Spoons, sugar, cookies, chocolates; </li></ul></ul></ul><ul><ul><ul><li>Customer service, technical service, machine maintenance; </li></ul></ul></ul><ul><ul><ul><li>Nespresso Magazine. </li></ul></ul></ul>
  6. 6. R elationship D ata M anagement <ul><li>Two types of analysis questions are found in Nespresso: </li></ul><ul><ul><li>Segmentation and selection questions: </li></ul></ul><ul><ul><ul><li>Divide the customer database into groups; </li></ul></ul></ul><ul><ul><ul><li>Draw a list of the name-address-city information for person and organizations; </li></ul></ul></ul><ul><ul><li>Acquisition analysis and selection questions: </li></ul></ul><ul><ul><ul><li>Emphasize on customer retention. </li></ul></ul></ul>Pictures: Nestlé Nespresso website
  7. 7. S egmentation & S elections <ul><li>Nespresso targets high-income households as its main customer ( Markides , 1999); </li></ul><ul><li>Segmentation of customers based on their value and loyalty for various products and customer type, with the objective to increase loyalty and/or consumption of the high potential customers . </li></ul>
  8. 8. C ross S elling & R elationship M arketing <ul><li>Marketing a lifestyle brand... </li></ul><ul><ul><ul><ul><li>Magazine: </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Attempts to portray Nespresso as a lifestyle choice for only the world’s most upmarket and discerning coffee drinkers. </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><li>Nespresso Boutiques: </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Coffee Sample to try; </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>sales assistents available everywhere to help you choose either coffee or accessories; </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Limited editions of coffee ‘special club’ </li></ul></ul></ul></ul></ul>Pictures: Nestlé Nespresso website
  9. 9. R etention and C ross S elling <ul><li>NESPRESSO system </li></ul><ul><li>- capsule, machine and club </li></ul><ul><li>Customers retention – cross selling </li></ul><ul><li>- capsules, sugar, crockery, cases, machine accessories etc. </li></ul>Pictures: Nestlé Nespresso Website
  10. 10. T he E ffects of M arketing A ctivity <ul><li>Establish Nespresso as the Super-Premium Brand and Concept </li></ul><ul><li>Become the Icon for perfect portioned coffee worldwide. </li></ul>Source: Nestlé Nespresso Investor Group Meeting 2006
  11. 11. I nternet and W ebsite
  12. 12. I nternet and W ebsite <ul><li>NESPRESSO’S WEBSITES: </li></ul><ul><ul><li>Loading time and versions; </li></ul></ul><ul><ul><li>Contents and lay out: </li></ul></ul><ul><ul><ul><li>The Nespresso system; </li></ul></ul></ul><ul><ul><ul><li>The premium blends; </li></ul></ul></ul><ul><ul><ul><li>The machine; </li></ul></ul></ul><ul><ul><ul><li>The Nespresso club; </li></ul></ul></ul><ul><ul><ul><li>Nespresso at the Office; </li></ul></ul></ul><ul><ul><li>Nespresso at the Office: </li></ul></ul><ul><ul><ul><li>‘ Free trial’ program. </li></ul></ul></ul>
  13. 13. D irect M ail and I nternet M arketing. <ul><li>● Personalized customer services designed exclusively for the customer: </li></ul><ul><li>● Through the Website </li></ul><ul><li>● Sending magazine </li></ul><ul><li>● Sending Offers </li></ul><ul><li>● Sending Catalogues </li></ul><ul><li>● Making Regular Calls </li></ul><ul><li>● Providing after Sales Service </li></ul><ul><li>Favorable Word of Mouth </li></ul><ul><li>& Boost in Sales </li></ul>
  14. 14. W e C oncluded T hat… <ul><li>- this is an innovative product (design, espresso coffee, clean), that filled a void in a market that expressed a need for it. Not a solution looking for a problem; </li></ul><ul><li>- a great complement strategy between machines and coffee dose refills; </li></ul><ul><li>- innovative marketing, in particular in terms of CRM ; </li></ul><ul><li>- a viral approach for a global product. </li></ul><ul><li>The combination of these 4 factors can be applied to the tech sector, and be used maybe as a recipe or framework for success. </li></ul>
  15. 15. R eferences & R esources <ul><li>Business Source Complete (2004) ‘RTD Tea & Coffee in the United Kingdom’. (Euromonitor Report); </li></ul><ul><li>Jobber, D & Lancaster, G (2006) Selling and Sales Management,7th Ed. Harlow : FT Prentice Hall </li></ul><ul><li>Lewis, Herschell Gordon (2007) ‘A Capital Idea? Well….’,Direct, 19 (2), p64. </li></ul><ul><li>Markides, Constantinos C. (1999) A Dynamic View of Strategy. Sloan Management Review, 40(3), p55-63. </li></ul><ul><li>Mascarenhas, O. A; Kesavan, R & Bernacchi, M (2006) ‘ Lasting customer loyalty: a total customer experience approach’ . Journal of Consumer Marketing 23(7), pp. 397–405. Emerald Group Publishing Limited [ISSN 0736-3761] </li></ul><ul><li>Nespresso UK (corporate website) available from </li></ul><ul><li>Nestlé Nespresso Investor Group Meeting Report (2006) </li></ul><ul><li>Peelen, E (2005) Customer Relationship Management. Harlow : FT Prentice Hall </li></ul><ul><li>Ryals, Lynette & Knox, Simon (2001) ‘Cross-functional issues in the implementation of relationship marketing through customer relationship management.’ European Management Journal, 19 (5), pp. 534-542 </li></ul><ul><li>Verhoef, Peter C. (2003) ‘Understanding the Effect of Customer Relationship Management Efforts on Customer Retention and Customer Share Development’. Journal of Marketing, 67 (4), pp. 30-45 </li></ul><ul><li>Winer, Russell S. (2001), ‘A Framework for Customer Relationship Management,’ California Management Review, 43, pp. 89-105. </li></ul><ul><li>Xu, M. and Walton, J. (2005) “Gaining customer knowledge through analytical CRM”, Industrial Management & Data Systems, (105) 7, p.p. 955-971. </li></ul>
  16. 16. The End Thank you. Any Questions?
  17. 17. CREDITS Slides Design /Editing Leonor Silva Graphics Leonor Silva Theory Content Leonor Silva Gang Wang Xiaoran Xie Yingyu LIU Adedeji Osobukola Hand-Outs & Poster Leonor Silva